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WAEC Financial Accounting 2015 Question 12

Question 12

Trial Balance

Which of the following accounts has a credit balance?

  1. A.Capital.
  2. B.Cash.
  3. C.Drawings.
  4. D.Premises.
Show the answer and explanation

Answer: A (Capital.)

Explanation

Capital is owed by the business to the owner, so it has a credit balance; cash, drawings and premises are debits.